prices. some fed members saying they looked a little high and maybe people were hoping that too much was going to happen with the trump administration. >> yep. interesting to watch the yield curve. it will be sums important. >> and tomorrow we will washington the meeting. fascinating stuff. >> thanks for watching "power lunch." "closing bell" starts right now. ♪ >> hi, everybody. welcome to the "closing bell" at the new york stock exchange. i'm kelly evans. >> i'm bill driveeth. this turned out to be an gresing day in the last hour. stocks initially popped on the back of that strong adp jobs number this morning. now we're off -- and i should point out the dow was up 190 points at its peak today. the nasdaq hit a record intra day but now with the fomc meeting minutes out, showing they're focusing on the balance sheet, talking about stock prices and things, those highs are way lower now.

you understand what i'm saying there? i don't understand. >> i'm following. >> then there's energy. that's been a big loser this year, but it was leading the market higher today until the inventory data came out, and that took the wind out of the sails of the energy market. but the energy stocks themselves are still strong today. so we have a debate on which names in the energy sector as far as the equity market goes could be worth buying right now. >> meantime, some big deal news this morning. panera is up big on news being bought for $7.5 billion. we got details and a look at other potential takeover targets in restaurant space. >> and amazon struck a deal to stream thursday night football this next season. the former head of cbs sports will be joining to get his take on whether this could be a lucrative business for the internet giant, what does it mean for the nfl, what does it mean for the broadcast networks themselves. >> how about twitter? >> right. they had the deal last season. >> and then after the bell, chicago cubs owner okay ricketts

on opening day and his take on markets and the political climate. >> i don't know how we're going to get to all of this in the next two hours but we'll try. let's begin with president trump's meeting with the king of jordan at the white house today. eamon jabbers is there with the latest. >> hi, bill. >> reporter: in the press conference today the president sounded as hawkish on syria as i've heard him. this is a president who, remember, under barack obama, donald trump tweeted out encouraging obama not to go into syria. today though he said he's very flexible. he's changed his views on syria and bashar al assad, the leader there, in the wake of that horrific chemical attack that killed many children in syria yesterday. the president saying he had an emotional reaction to that. it sounded like some action by the united states could be in the offing here, but the president declined to say what specifically that action might be. here is what he said. >> one of the things i think you've noticed about me is militarily i don't like to say where i'm going and what i'm

doing, and i watched past administrations say, we will attack at such and such a day, at such and such an hour. i'm not saying i'm doing anything one way or the other, but i'm certainly not going to be telling you as much as i respect you. >> reporter: all of this coming hours after we got the news steve bannon, the president's key adviser, had been removed from the national security council. you remember it was controversial early in the trump administration when he was named to that. he is seen as a purely political figure. eyebrows were raised by his being named to the nationality security council in the first place. now though he is being removed. i talked to a white house official here inside the building earlier today about all of this. they're minimizing the significance of this here at the white house. they say that bannon was simply placed on the national security council in the firms place to keep a check on mike flynn, the previous national security adviser who has since been removed. now that flynn is gone they say there's no need to keep a check on him, and the new national security adviser, h.r. mcmaster,

is free to do what he wants with personnel on the national security council. one of those apparently is removing steve bannon from the national security council. we are not told though exactly who made this decision. the white house official was asked very directly did donald trump order this or did h.r. mcmaster order this. white house official declining to simply answer the question and say who ultimately decided steve bannon should be gone. back to you. >> eamon, want to go back to what happened in syria for a moment. what further pressure do people think can be brought to bear, especially when the military backers include iran and russia where the relationship is already deteriorating? >> reporter: the president said this action crossed many lines for him, of course an echo of barack obama's comment about being a red line in terms of using chemical weapons. this president very kit cal today of the previous president for not following through on his threat to take action in wake of crossing that red line. this president careful not to say what specifically he is going to do. what is that action possibly

enstale? it could include diplomatic and of course military action is certainly a possibility. >> thank you for bringing us up to date. the nasdaq hit new highs in the session today. bertha is tracking the action. >> reporter: hey. it doesn't look like we close at a record but the nasdaq has gotten in about 1% from that 6,000 level. it has been led again by big cap tech. powered by apple's momentum, shares topping $145 for fresh all-time high putting apple's cap in about 2% of a new record. amazon's new record means it is worth twice as much as wal-mart, as the online retail giant flexes entertainment rights to screen nfl games and a lot of the usual suspects are among the new highs today, including intuitive surgical, of course facebook, microsoft, but also cheesecake factory which seems to be riding higher after that

panera buy-out from jab. >> bertha, thank you. see you later. let's get to our closing bell exchange right now. what an interesting day this is. we have larry glazer from mayflower advice rs joining us. stephen guilfoyle from the street.com and sarg 986 llc. he is at post nine. rick santelli is feeling he is on vacation but he is at the cme in chicago. sarg, okay. adp numbers, the jobs number this morning lit a fire under the market. we were up 198 on the dow and the foimc seemed to throw water on the rally. what is going on today? >> i have been saying they should address the balance sheet before the tightening cycle began, i guess it rattled markets a little bit. really, how seriously can you take the federal reserve bank at this point? jeffrey lacquer embarrassed the central bank. he probably implicates janet yellen. daniel turello, also known as

the complete embarrassment that used to run banking regulation, comes out and says the vocal rule probably went too far, distress test probably went too far. a rank amateur move, if you ask me. they're going to be replaced. this year three governors, next year probably the chair, probably the vice chair. i think, yeah, they're going to raise rates in june. beyond that, i don't know how aggressive they can get because they've lost credibility and the composition of this group is going to change. >> larry, do you think that moving on the balance sheet is next to come for the fed rear? what do you think in general about the behavior of markets today? >> you know, kelley, it has been a market of contradictions and today is no exception to that. the market is willing to overlook things like mixed economic data, great adp but mixed data in other areas, a market willing to overlook geopolitical turmoil, dysfunction in washington, and the inability to get policy

done. at the same time the market believes trump has their back. they believe that he is pro business. he has engaged in dialogue with the business community, with labor. as a result, the market voted with its feet, it is being resilient, but the markets aren't crazy. we see investors increasingly moving money overseas, migrating money out. we recognize the unsustainably high valuations are not realistic. you don't see insider buying here. i think that's really important. instead of focusing on the fed or focusing on friday's jobs report, we need to focus on earnings, we're going to keep the market and move it higher. that's what is critical and what is missing. >> we have plenty of time before the earnings, but they will be coming pretty soon here. rick, i'm curious as to your thoughts on the market response, not only to the adp but the fo 1 c minutes. the treasury once again, as you said yesterday, equities are the place responding most. treasuries, the yields went down and then moved higher on the fomc minutes and moved lower again. what do you think is going on

here? >> well, you know, let's put it in context. 125, it kind of flirted with 126, 127-ish, back down to 24, now it is unchanged. splitting basis point, the 30-year bond unchanged at 3%. it got up to 3.02 briefly, really white noise. in terms of the equity, we did give up something, but then again you know how i feel about intraday moves. it is like the crimmage before the big game which, of course, is the close and weekly close and monthly close is more important. those have not changed much. everybody agrees with larry. dysfunction is the fault of washington. it is not taking away from the markets. when you get less defaults, you give the markets a presence and we haven't seen presence in a while. we can hope. but as far as the numbers today, i thought adp was pretty good but gave up a chunk on last month from 298 i believe it was, 245. i think that we're looking at a

long-term growth picture that really hasn't changed much. we have the feeling that things can do better. we may have a landscape where things can do better, but most market traders i talk to say the real confidence is they don't think it is going to get any worse. is that half empty? i guess, but then your wallet is half full if you invested. >> larry, want to briefly mention, you said talked about looking outside the u.s., and i see mexico seems to be a buyer here? >> that's right. it is going to be anti-trump. made there was never a trump train. maybe it was simply better economic data and people got wrapped up they started taking money out of places and created cheaper valuations. at the end of the day valuations and fundamentals never mattered more in the last eight years than today. we want to buy what is cheapest. we have weak trading partners on either side of the company, mexico got really cheap a few months ago. we have been talking about some of these stocks on your network for a while and i think valuations are still attractive

outside of the u.s. maybe less so today, but there's compelling opportunities. investors want to focus on what is cheap at not policy-driven decisions right now. >> quickly before we go, sarg, you like the airlines here? >> i have been buying the airline. i have been buying the energy, a couple of sectors. i got back into the banks after taking a profit. i have reloaded a little bit. i would like to just ask, i have one question. >> very quickly. >> with earnings looking up 9 pearls for the quarter year from year, revenue up 7% for the quarter year for year, if we do get a 20% corporate tax rate, which might be a type thing, but if we do it takes on another 7.5% next year. >> good point. >> maybe the valuations aren't so crazy. >> it is a question of when those taxes come. if they come in 2018, the market is ahead of itself. the biggest beneficiary of repatriation of capital is someone like apple. with 250 billion overseas they get to bring it back at a cheap level. maybe that's why apple is up 25% this year. they believe the tax policy is going to happen, just don't know

when. i don't deny the market believes tax reform is happening and coming, they just don't know when. so they're going to take a pause until they have more evidence about timing. >> apple doesn't pay the headline rate any what. it should be other companies. >> that's right. >> they never paid the effective rate. they need to share the wealth a little more and empty the coffers and pay for schools in this country and i think bring some of the money back. whatever money comes back under this policy will help support infrastructure. it will help support the middle class and the family. >> and buy their stock back. >> i agree. >> and different denievidends. >> let them repatriate and buy their stock. >> couldn't agree with you more. >> this is why we call it the exchange. >> good stuff, guys. thank you. >> thank you. >> thank you. >> got about 45 minutes to go with the dow hanging on to a gain of about 60 points, less than half where we were at the high, a third of it. the nasdaq lower now, the russell lower and the s&p still at 4. >> amazon hitting an all-time

high despite critics saying the company paid too much for streaming rights to the nfl games. we will talk about who has it right. wall street or the naysayers coming up in a moment. >> also ahead, chicago cubs chair and co-owner tom ricketts tells us how winning the world series last year altered the team's business strategy. you are watching cnbc, first in business worldwide. the bond report is sponsored by pimco. e new guy? e new guy? hello, my name is watson. you know wine, huh? i know that you should check vineyard block 12. block 12? my analysis of satellite imagery shows it would benefit from decreased irrigation. i was wondering about that. easy boy. nice doggy. what do you think? not bad.

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up and down day on wall street. the dow was up 198 points after a stronger than expected adp jobs report this morning, but then at 2:00 eastern when they released the minutes of the most recent federal reserve meeting, it showed that the fed officials were focusing on the balance sheet, maybe getting ready to unload some of the securities they've held, tightening further there, in addition to raising rates. that seemed to spook the market. the nasdaq is now negative after hitting an intraday high earlier. s&p up 2.5 and russell down 11. meantime, plug power is surging today. the small-cap company agreeing to supply amazon with hydro general fuel cells that power forklifts at 11 of the retail giant's warehouses. plug power says that the deal could generate about $70 million

in revenue. separately amazon has acquired the right to buy up to 23% of plug power, which, look at that, is up 72% today. >> admittedly it is at $2.25, but a huge move there. a big deal for that company. shares of amazon moving higher after the company won rights to stream 10 thursday night nfl games for the upcoming season. the deal worth about $50 million reportedly. that's five times what twitter paid last year to stream the games. >> let's talk about how this could change the game for everybody involved, the nfl, the networks, these digital companies. kneel pillsen of pillsen communications, of course the former president of cbs sports, joins us now. in the spirit of new media that we're talking about, we're bringing neil in via skype today. hey, neil. how you doing? welcome. >> thank you. good to be with you. >> what do you make of this deal on many fronts, you know, last

year it was twitter, this year amazon paying much more than twitter did. what's going on here? where is this going? >> well, think we have to note a few things. first of all it is only one year. secondly, it is only ten games. third, it is only $50 million. four, it is an add-on. it is not a new package. it is simply a right to stream games that will already be available on linear television. >> neil, what do you mean by saying it is only $50 million? >> well, to amazon, given their balance sheet, whether they make a dollar or lose a dollar it seems insignificant. >> right. >> and the extra $40 million for the nfl is not really significant either. i think what you have here is something that is continuing. the nfl is still looking at various opportunities beyond linear television for profit and for distribution, and the other companies, yahoo! twitter, facebook at some point, amazon, are looking at the nfl as a

possible, you know, good sport to distribute to their customers. >> what do you think? does this ultimately expand the audience for football games or does it cannibalize linear television as you're referring to it? >> well, somewhere in between. i don't think it expands so much because, frankly, i think twitter is going to have a larger audience than the behind the pay wall amazon customers. and for the nfl, for linear television, it is really not very significant because the at-home audience will still be watching on a cable channel or a broadcast network, and the out-of-home audience will have an opportunity to see television sports that they would not otherwise be able to watch. that's why, frankly, up to this point the out-of-home over the

top viewship has not cannibalized television. >> reportedly they butte out facebook and otherness the mix for this. as it becomes more important for platform and maybe youtube, netflix to get live rights, how much more do you think the price of the content go up and how much more may the nfl be able to monetize? >> it will go up if at any point the nfl decides to give an exclusive package to one of these over-the-top platforms. then you're talking ten times what you're talking about now. you are up in the $500 million range or higher. i don't see that happening any time soon. the tv agreements for the most part are up in about five or six years. even down the road i don't see an over-the-top platform taking away a package from television as we know it, linear television. >> be that as it may though, down the road -- and i'm talking beyond, you know, the next renewal of these packages, what

role do you think these digital platforms will play in distributing nfl games, or even, you know, professional sports overall? >> well, i think they're going to make inroads. i think they will be picking up packages, but you have to look at the economic model. at some point an amazon or netflix is going to have to make a judgment that they can generate at least as much as they pay with incremental revenue. i'm not sure they can do that today. hard to project what they can do five, six, eight years down the road. i will say, as i think sean mcmathis said last week, sports is becoming an increasingly important product for conventional television. so i don't think that television is going to go away any time soon. >> sean mcmahonis, your successor at cbs sports. >> on that month, i think cbs has the march madness, college basketball which finished

through 2028. could there be a day when we're watching march madness and streaming it on one of these platforms instead? >> well, you can see it on a streaming platform today. >> right, but exclusively. >> exclusively, now that's the big term. i honestly don't know. i'm not sure anybody in television can tell you, but i don't think it is going to happen as soon or as quickly as some of the commentators have indicated. i think there's still strength and money and an economic model within conventional television that will push off any loss of a significant package to other carriers. >> neal, our experiment with skype works. >> we like this. >> good to see you. thanks for joining us today. >> i'm sorry i'm not dressed for the occasion, but it came up at the last minute. >> we didn't know if a toddler might wander into the picture or anything like that, but -- >> good stuff. >> thanks, neal. good to see you.

>> all right. thank you. >> neal pilson, former krbls sports president. another advertiser just pulled out of bill o'reilly's program. we have julia boorstin counting it up for us. you have gone past your fingers and toes. what do we have now? >> reporter: that's right. now 33 advertisers in total are boycotting bill o'reilly's show on fox news. old dominion, car fax, eli lilly and legal zoom are the latest companies pulling ads from the program. this of course in the wake of the "new york times" reporting that bill o'reilly or fox paid 13 women -- sorry, $13 million to five different women to settle sexual harassment allegations. president trump defending bill o'reilly, telling the "new york times" that he's a good person. fox news evp of ad sales paul righten berg telling cnbc in a statement, we value our partners and are working with them to address their current concerns about the o'reilly factor at this time. those have been reexpressed into other fnc programs.

there's been no impact on fox in terms of revenue just yet, but we will have to see how it all plays out. back to you, guys. >> julia, how many are left at this point? i mean 343 3 is a lot of advertisers. >> reporter: it is a lot of advertisers. what is interesting is advertisers usually buy across fox news. they don't necessarily usually weigh in on which shows their ads will run on, more than just trying to target specific demographics. i'm not sure how many other advertisers are specifically within that o'reilly factor show, but there are many others on fox news who might say, we want to make sure our ads don't run on that show. it will be interesting to see. i'm sure there are many more who could still weigh in. >> thanks, julia. keep us apprise willed. julia boorstin in l.a. >> and we have 45 minutes to go. dow, look at this, basically erased the 200 point gain for the day. still positive by 7 points. the s&p is negative, trmts are a little higher, the russell the worst performing, once again down 1% and the s&p is down 2.5

points. >> monday buying the dips, today telling strengths. when we come back we will tell you which brick and mortar retailers could be hit the hardest from the current earthquake royaling that industry right now. >> plus, bed, bath and beyond and yum china. they will report earnings after the bell. we will break down the numbers as soon as they hit the tape. stay with us. ♪

welcome back. a major reversal today.

the dow was up about 200 points. has turned lower. look at the nasdaq which hit an intraday high and now down half a%, down 25 points. this played out pretty much in, what would you say, about the last half hour? >> absolutely. it was a slow build at the fomc minutes when the most recent came out at 2:00 eastern. there was a time when the market was digesting the information and then debbie wasserman schultz a slow roll south. we've just -- we lost everything, you know, all of the gains we had. >> if that is the case -- by the way, it didn't help oil which was strong was weak on production data. >> right. >> a couple of other reversals. it feels like the old day where the fed could come out and move markets with every utterance. in this case it is the fed minutes. there you have it. >> interesting day. meanwhile, retail continues to struggle against the trend toward e-commerce. morgan stanley highlighting a surge in store closure announcements, over 2,000 announced for the first quarter

this year compared to 1,000 last year and only 100 reported in the fourth quarter of '16. plus rbc capital markets is expecting things to get worse for various brick and mortar retailers, naming nine brands it expects to have the largest revenue deceleration this year. top of the list is a center retail group, under armour and coach. even ulta is on this list, and that may be because things -- you know, have you to slow down at some point after the tear they've been on, but they're number seven on this list. >> right. >> one retailer that is not concerned about e-commerce pressures is costco. the company continues to see strong same-store sales and its chief financial officer saying in the earnings call last month that they want to get customers in the store because they will buy more than they would otherwise online. >> and it is hard to ship mayo. >> it is hard to ship mayo as somebody said in our production meeting. but, you know, you buy stuff in bulk from costco, and that's

expensive to ship. >> yeah, and as they said there's that effect of just being in the store, you will buy more things than if you are online where it is more tactical. no one wants to sit staring at a screen and clicking randomly for an hour and loading the cart. once you are in the doors of the store it is a different effect. >> very tempting, isn't it? time for cnbc news update with sue herera as we look at the costco video. >> indeed. i shop there many times, bill. here is what is happening at this hour. homeland security secretary john kelly telling the senate he does not expect the construction of a border wall to extend the full length of the u.s./mexico border, but that didn't stop democratic senator claire mccaskill from create sizing it again. >> everybody knows it is not going to happen in congress. every republican knows it, every democrat knows it. it appears the only person who won't say it out loud is the president of the united states, and it is embarrassing. >> pepsi is pulling an ad that is being widely criticized for appearing to trivialize protests

for social justice causes. the ad shows kendall jenner joining a crowd of young protesters beforehanding a pepsi to a police officer. peoplesy has apologized for that ad and pulled it. the national spelling bee has announced a new rule change to avoid future ties. competitors making it to the final round will take a written test consisting of 12 spelling words and 12 multiple choice vocabulary questions. the results will be used as an eventual tie breaker. you're up to date, guys. i've had three ties in a row. that's why they've put in this new rule change. >> and they don't let viewers call in to make corrections either, by the way. >> no, they do not. >> you were thinking the same thing, i know. >> i covered one of the spelling bees with al roker . >> i remember. >> and there's so much pressure on those kids, it is amazing. >> yeah. >> and viewers do not call in. >> herringbone sank me in 7th grade. >> i will never, ever spell

flimsy wrong again, i added an e. and you will never spell herringbone. thank you, sue. >> you're welcome. see you later. >> we are told by our cracker jack research team that this could be the biggest turn-around for a market in 14 months. >> wow. >> as the dow -- well, the s&p had been up 18 points, now negative. the dow had been up 198 points, now negative as we head toward the close. coming up, some small business owners say that they would be happier if the president stayed away from his mar-a-lago estate in florida. we explain why. >> also ahead, chicago cub chair and co-owner tom ricketts give us his take on the multi-million dollar business of baseball and the chances of bringing home another world series trophy. stay with us.

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. we're looking at the possibility of the biggest swing intraday for the markets in about 14 months. the dow was up 198 points at its peak today, now down 38 points. the s&p had been up 18 points, right now down 8 points as we head toward the close with 25 minutes to go here, kelly. >> let's look at one bellwether sector with less than half an hour to go. joining me is carter worth looking at semi conductors. what do i see happening there?

>> remember this is different but disregard what i'm about to say, but make the negative for semis. this is from the low of bear market in '09. it is all about this spread of late meaning, of kors, this time self-driving cars and these good things. it is never different, right? this is an excessive angle, almost double the performance of the s&p. >> this gap you are talking about? >> that's right. and the sheer rate at which it is changing. if we look at the next chart which zeros in on the steep angle, this is the path, i'll clear that, not to say they weren't good arrows. >> you know how to use it better than me. >> yeah, well, in any event what we want to see is some form of check back, check back in the trend. we have not checked back now in the better part of ten months. so excessive, popular, crowded, expensive. >> are we right to look as it as a bellwether sector in general? is that why you're emphasizing what is happening in the market? >> there's one in the transport which have not been doing all

that well and the other is semis. semis are over done. i would say keep an eye on them. their relative performance to the tech sector actually peaked in december. >> wow. carter, thank you so much. carter worth. bill. >> kelly, thanks very much. panera bread shares soaring today, hitting a new all-time high after the bakery chain agreed to be taken private by the same company that owns cherry green mountain and crispy cream doughnuts. our de facto foodie on the staff, susan li has the story. >> i don't mind that title at all. let's talk about the largest restaurant deal ever in the u.s., $7 billion. that represents a 20% premium to the share price before the news broke. it might be a bit surprising panera at the top of its game would actually want to go private. shares were already trading at record highs, and they were outperforming the rest of the industry in sales thanks to their digital strategy. pa narrow ceo said going private is a competitive advantage.

>> what is hard for me is the continual pressure on the short-term. when i started 25 years ago, i will tell you that a third of our investors were looking at this for a year or longer. today i will say two-thirds of our investors are thinking literally quarter to quarter. >> yeah, a reality is we're in a slow restaurant environment with virtually no growth. that means you have to take market share from competitors. analysts believe there's a potential for panera to open up 1,000 more of their bakeries. panera also has a lot of room to improve their franchising, which is only at 56%. mcdonald's is over 80%, burger king and dunkin' donuts at more than 90%. franchising is important in this day and age where wage costs and rents are going up. franchising needs a steady stream of income without having to incur the cost concerns. guys. >> well, susan, since we just mentioned mcdonald's, they're still in the green, the second

best performer on the chart just down and this after a management shake up. investors seem to be responding positively. >> remember i mention it is a tough restaurant sector with virtually no growth, foot traffic is slack, and that means you take market share or lose it. they want to keep the lead but they need to stay relevant to do that. the term in u.s. restaurants has been to fresher, healthier options and digital ordering. kpelt tors like panera, mcdonald's, shake shack have been bringing in the crowds. that's why morgan flat ley is the new cmo for marc donald's. she will be in charge of enticing customers in. mcdonald aiming to go high tech by the end of this year. they have a new digital head who will hopefully make it happen. finally building a progressive modern burger key which is ceo motto they need a good menu.

they have brought in linda to do that. mcdonald's stock actually out performed the s&p gaining 15% since the election, and actually they've out performed some names that really went ahead at the beginning of this year and now they've caught up and surpassed. back to you. >> all right. some free advice for them. more fresh beef and bring back the angus snack wrap, that would it from here. take it for what it is worth. thank you, susan. see you soon. 20 minutes left in the trading session almost exactly now with the dow down 13 points. the shutdown is coming they say and president trump is in the middle of it, but we're not talking about a government shutdown. we will go live to florida to explain coming up. as a benchmark for average. yet a lot of people still build portfolios with strategies that just track the benchmarks. but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation?

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which is what we do. crowne plaza. we're all business, mostly. welcome back. the dow's turned lower by 16 points. he was up nearly 200 in the session. a couple different reasons why that may be the case. certainly the fed met. the nasdaq down nearly half a percent now. >> let's talk market movers on this wednesday. therapeutics is lower with the biotech company cutting about 20% of its workforce as part of a cost reduction plan. last friday the company lost a ruling on four patents for its ms drug. the company is appealing that

decision, but the stock is down 6 and two-thirds% right now. walgreens boots alliance is lower with the chain reporting disappointing quarterly sales, citing challenging conditions in continental europe amid a strong dollar. walgreens also announced authorization of a one billion dollar stock buy back program. that stock is down 1 2/3%. >> as president trump prepares to meet china's president in florida, several business see it only as a money losing opportunity. ylan mui in palm beach with the story. >> reporter: this will be one of president trump's longest trips to palm beach and many businesses dreading it. that's because when president trump comes to town this airport around me shuts down. it is smack in the middle of a no-fly zone extending for ten nautical miles around mar-a-lago. we talked to a flight training school here that says they're down $67,000 so far this year because of all of the closures so far. they're expecting to lose

another 30 grand over the next four days as president trump hosts president xi here in palm beach, and eventually the flight school is worried their students just won't come back. >> they're frustrated. most of them cancel flights. what do i do, you know? they're, you know, looking at us for answers and it is hard sometimes when we don't have them. >> reporter: one business here has already closed up shop and moved to alabama. the airport manager told me that is costing him hundreds of thousands of dollars in revenue this year, but of course not everyone is suffering. the held of the local tourism board said that hotel occupancy rates are up and that there's plenty of foot traffic along the fancy shops in downtown palm beach. but, guys, one thing everyone is trying to do is really adjust to the reality that president trump is treating mar-a-lago as truly the winter white house. back to you. >> indeed. ylan, thank you very much. house speaker ryan is making some comments and may have dragged the market lower as well. bob pisani on the floor of the

exchange. we've been blaming the fed but there may be other reasons? >> there are. it may be both. there are two problems. beginning around 2:00, first is the fed minutes. there were three separate comments that were made in the fed minutes that have a lot of people down here talking. first one is the fed says they don't expect any fiscal stimulus until 2018. obviously a bit of a disappointment there. second point, some on the fed see the stock market valuation as high, and of course we debate it all the time but the fed rarely comments on the stock market valuations. third, they're considering reducing their balance sheet. of course, effectively reducing your balance sheet sort of can be viewed as additional rate hike. some people said, well, maybe effectively we will have another rate hike at this point. those are three things on the fed. shortly after the fed meeting, this was about 2:15 or 2:20, reuters released a story saying house speaker paul ryan saying tax reform could take longer than healthcare has taken. he went on to point out that the

three entities involved in this whole thing, the house, the senate of course and the white house aren't even on the same page yet on tax reform. that got a lot of people talking, saying maybe this is going to take much, much longer than we anticipated on tax reform. so, bill, i think there's a combination here of the comments from the federal reserve minutes, the three i pointed out as well as that story about house speaker ryan. it was quite a reversal that we saw here. we were up nearly 200 points on the dow, and in particular in some very big etfs if you look at the spy. that reversed very quickly, starting around 2:05. then we saw russell 2000, mid-cap stocks reverse even more, and that's the biggest play on the trump agenda overall. and then the nas dag, the qqq, these are all very big etfs and all on a day when the volume is on the normal side, they quickly went to fairly heavy volume. so there really was a market

event here in the middle of the day that caused people to move around a lot of stock, and i think it is the fed and i think it is the ryan comments. back to you guys. >> yeah. this morning's strong adp jobs report is a distant memory by this time. thanks, bob. see you in the close. and we have about 12 minutes left here so we'll see what happens. dow is down 37 points right now. >> it is not quite drill, baby, drill, but oil pipelines are being bit and black gold is on the rise. we have a debate on the best opportunities to invest in energy coming up. market movers is sponsored by -- at blue apron, we're building a better food system.

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♪ maybe you saw it just before the break, that shares of the wide scream movie theater company i max had been halted. this is pending news, no idea what it is yet. stock trading at $32.90 per share. as soon as we find out what that is we will let you know. in the meantime, mark cashon pointed out as we head toward the close that today's market on close order show an imbalance of $200 million to sell, which he called a non-event on a day when we've already seen tremendous selling going into the last two hours of trade today. the dow was up 198, now down 31

points. meanwhile, u.s. crude oil has pulled back from its highs of the day on the heels of data from the energy information administration that showed an unexpected inventory rise by 1.6 million barrels last week. >> and more production. >> and yet another market that has turned south after a pretty strong open today. >> yeah. i think it was at a four-week high yesterday, too. joining us more on energy and where to find the best opportunities let's bring in will green who is here from post nine and sophie clark who likes renewable energy. will, to you first. the price of oil here obviously a major point of contention among people thinking about oil and gas. what do you think is going to happen here? why are you bullish? >> you mentioned it. you know, the production trends keep on moving higher. i think that is a secular trend that continues. one thing that has happened in the last five to ten years is shale technology has absolutely revolutionized the way we look at oil and gas.

the reality of it is we consume about 20 million barrels a day in this country, five million barrels a day of that is net imported. for the first time in decades we did export it so we're tied into the global market. >> you think companies can continue to produce more oil and make money that way, even if the price of the commodity is falling? >> absolutely. i think with the cost curve that's been reset within -- within the, you know, shale aspect of this business -- >> yeah. >> -- you can absolutely continue to see production climb economically for these companies. >> and, sophie, you like the renewables. so give us an example. who do you like here and why do you think it is a better growth opportunity than just buying oil companies? >> yeah. i think important thing to remember is that when your bulls did not compete with oil, clean tech. we are talking about power generation complex. so the main competition in terms of fuel is with coal and net gas. oil is a very small part of the mix there. and we think that renewables have been taking share consistently from coal and gas plants and will continue to do

so, and it is driven mostly by economics. let's not forget coal is rapidly approaching the end of its economic life and the policy cannot change that. the renewable and gas is really what has been growing in terms of the mixed, and we think it will continue to do so. in cost of the renewables is really the main driver behind the gate here. we think with 30% to 40% declines in just 2016, we think that tremendous opportunities to build more renewables into the mix. >> prices are good for the renewables and problem more for you, will, but i like pioneer and callum petroleum we want to mention? >> yes. i would highlight pioneer here. i think it is a name that continues to benefit from these trends. they have hundreds of thousands of acres in the core of the midland basin, very low cost producer. callan as well, low cost producer in the midland base and smaller, but ultimately doubling

production between the first quarter of '17 and end of 2018. those two names absolutely i think have the ability to benefit from the secular trends long term. >> sophie has a long list which we don't have time for, but we have for renewable energies, atlantic yield to name a few. we have to move along because of the moment us day we seem to be building in the market. thank you for joining us today, sophie and will. >> thank you. >> thank you. >> with the dow down 13 points, boy does it not tell the whole story. we will come back with the closing countdown in a moment. >> after the bell, baseball is under way and chicago cubs are defending historic world series title. we will talk to owner tom ricketts about the new season and how he applies his investing background to the national pastime. you are watching cnbc, first in business worldwide. ♪ kevin, meet your father. kevin kevin kevin kevin kevin

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then the foimc minutes which lately have been a non-event. >> normally are a non-event. two things moved the market. the fed and paul ryan. look at what matters to the world. the trump agent matters. fed says we don't expect fiscal stimulus until 2018. then paul comes out and says tax reform could take longer than health care reform, saying that the three bodies of government are not even on the same page yet on tax reform. that's not helpful. what else matters to the market? interest rates. the fed says we're considering reducing our balance sheet this year. well, markets said, wait a minute, reducing the balance sheet is almost like another tax hike -- excuse me, rate hike. >> right. >> that's not terribly helpful to the market. finally, valuations we debate this all the time. the fed said, valuations for the stock market seem a little high. it is not interesting to you and me but the fed doesn't normally comment on stock market valuation. several events sort of conspired around 2:00, 2:15 and notably

moved the market. we saw volumes go from moderate to fairly heavy on big etfs like the russell 2000, is s&p and the qqqs. >> what an interesting day. >> for a guy like me it was a lot of fun, bill. >> right. >> we have some market moving. >> let's see what happens tomorrow. we'll see if the trend continues. down 41 on the close for the dow. public storage ringing the closing bell at the big board. stay tune for the second hour of "closing bell" with kelly evans. see you tomorrow, kelly. ♪ >> thank you, bill. welcome to "closing bell," everybody. i'm kelly evans. let's look alt how we're finishing up on wall street. a dramatically different finish from how we began, dow closing down 42 points. that's its biggest intraday reversal in 14 months for the blue chips. looking across the other averages, they all sank as well. the nasdaq hit an intraday high earlier today only to drop by about half a percent, actually

more nearly six-tenths of a percent on close. 6864 is level for the dow, it is 2647. for the s&p 500 shedding about seven points, about a third of a percent to 2352 today. russell 2000 is down more than one percent, 1352. more on the turnaround in a moment. coming up, we will talk business, bonds and baseball with tom ricketts, the founding of and capital and owner of the chicago cubs. joining me on the panel is sandy sze. for more on the markets, joins us from ariel investments and joe durant from united capital. wow. i mean we thought the narratives were written at 2:00 p.m. and everything changed. it seems, you know, to at least have been in large part to what happened at 2:00 p.m., the release of the fed minutes. >> it did. you know, it was kind of a bounce day earlier in the day, you know, reacting to secondary good economic data. even the bad stuff was up, retailers up, junk bonds were

confirming. it seemed like a reprieve day. and then, yes, i think the generally more hawkish tone to the fed minutes, the fact they were mentioning high stock valuations is not a big deal, but the market never likes when the fed is looking at financial conditions principally and saying, you know, when we eventually stop reinvesting the proceeds from the bonds we own, we may stop it all at once as opposed to tapering it. all of these things mixed together i think into an already skittish trading tape, just because we're still in the range. nobody is sure if we need to correct a little bit more. you saw really a risk-off move across oil, high-yield debt. retailers went from solidly positive to deeply negative. think it was a pronounced move. not a lot of net movement from yesterday to today, but people are going to make lot of the fact this is a bad reversal. >> also these comments from house speaker paul ryan, weighing in on tax reform. jim horwood has more on what he said, and what he said fits into

here. >> kelly, it is fascinating when the market decides to pick up on signals and whose signals it picks up, because obviously the fate of tax reform is highly uncertain and has been for sometime. this is what paul ryan had to say today that caused that reaction from some people in the market. >> we will need more time to do tax reform. the house has a plan, but the senate doesn't quite have one yet and they're working on one. the white house hasn't nailed it down. so even the three entities don't -- aren't on the same page yet on tax reform. >> well, now that is definitely true by paul ryan. remember, early in the year the house was saying that it was going to take the lead on tax reform. they did not expect the white house to offer their own tax plan. now the white house says, we're driving the train on tax policy, and you've seen the discussions over the last couple of days about, well, maybe we'll bat around the idea of a carbon tax or some other kind of value-added tax beyond the border adjustment tax that's in

the house bill. the senate, on the other hand, is clearly not for the house border adjustment tax, and there are questions about whether the senate believes that a full rewrite of the code is possible or just the business side, and if it is the individual side, will there be a cut in the top rate? they're not sure of that either because orrin hatch may want to work with democrats on some sort of a compromise. so we have a highly uncertain situation here, and it happened to be the day when the speaker of the house said it out loud and that triggered a reaction. >> all right. john, thank you. appreciate it. our john harwood there. charlie, how do you kind of thread this all together? what does it say to you about the way these two things are developing? on the one hand fiscal policy, on the other monetary. >> sure. so i do agree that right now it is unfortunately all about washington, but i do have to say while some of the things on the edges are still being negotiated there is almost universal agreement within republicans we need to cut corporate tax rates.

that's what the stock market is looking for, that's what we all hope is going to happen. at this point the stock market is republican and wants lower tax rates, and i think we're going to get that. and, yes, it may not be easy and, yes, there will be things on the edges, but we're going to get that. >> whereas, you know, you go back to '08 the stock market was democrat and they wanted stimulus. it is interesting how that mirrors who is in office. i wanted to bring you in, joan, and ask you about the fed minutes. we are talking a lot about the reaction in the market, the sell-off, the impact and the simple fact that the federal reserve may decide to end the reinvestment. so it won't be buying any securities, running off its balance sheet. apparently more hawkish than anticipated. how big a deal is that to you and do you think to the bond market ultimately? >> i think it is important but we've seen the feds very quick to change its mind. so we have an optimism that's priced in that's a real problem. when you look at the growth in

earnings that are priced into the market over the next couple of quarters, and if the fed does sig to affect that, what we've seen clearly is there's a lot less confidence that the trump administration can push through what it wanted, from healthcare, clearly infrastructure is on the back burner now and it is taxes, and now we're being told taxes are going to take a while. so what we're seeing is just less confidence that things will happen in the speed that people want and the optimistic early days of the administration, and the fed adding a little more reasons to say, you know what, we probably have been a little too aggressive with our earnings growth expectations. what you're seeing now is the market's really going nowhere but it is doing it in a more noisy way than a we've seen for sometime. so it feels more scary even though it is really doing nothing underneath at the end of the day, if you look week after week. >> i was just going to say, mike, it is hard to get bearish when you have a deal like panera going private this morning. >> sure. >> it is a big one, and it is not a chain that was

dramatically undervalued, they're picking it up cheap. the deal activity has been relentless, whether it is staples or others trying to put themselves up and the credit markets remain strong. >> the markets are flush. there's plenty of lick wildity, it is not a concern about risk appetite levels at the moment or the availability of cheap credit. i think it is all fine. i think the big question is was the fed trying to send a signal today. if you look at the bond market reaction, it is not as if they priced in many more hikes. it was this general tone that the fed has its eye on something besides the trajectory of economic growth. so everyone is fine with tightening as long as it is in response to an economy starting to run hot. if it is about, gee, there's a little too much fantasy speculation, we want the balance sheet down and rebuild ammunition so we can loosen policy down the road, that's a different equation. >> charlie, what did you think about them calling out the valuation of the stock market? >> well, i think that's a very reasonable thing to do. when i come on your show, i think people need to invest in stocks that aren't trading at 20 times earnings. we have sectors that are,

frankly, overpriced. so there are spots, and the names that i personally invest in are names like kkr trading at eight times tradings, not the 19 of the market. so valuation is, i would say, number one on things that value investors are worrying about. >> joe, would you echo that? >> i absolutely do. i would just encourage everyone, when you have these dislocations where you see international is doing better than u.s., fixed income is moving a lot more than anyone expected, make sure to rebalance your portfolio so you have the right equity allocation you intend to have for your risk profile. >> and just i would add, kelly, that obviously today was a bit of a jarring move. we're still in this trading range. it is not as if it really change willed the overall story in terms of where the market has been going. you get in the volatility index dipped below 11 today. it did seem as if maybe it has gotten to some degree as calm as it is going to get right now. also the policy stuff, i have been saying i don't think the market is priced particularly

tightly, any specific policy outcome. but if it is one less thing for people some say, well, that good thing is coming down the road, it is one more reason to say let me take some off the table today. it is a sentiment thing more than a tangible policy price. >> at the same time numbers this morning looked pretty good. charlie, one of the things i want to ask about, you know, you had the fed calling out high valuations. by the way, a guy in my building today i could barely see over the stack of boxes. he said, the economy must be so strong because i've never seen so many boxes here, but at the same time what is happening in the auto space has people concerned. are you concerned about some of the financial exposure to the auto space? >> yeah. so it is interesting, of. jamie dimon called out auto loans as being an area of concern and i think you have to go name by name. there are names exposed to that area. obviously the whole move towards six-year auto finance is not encouraging, but that's a relatively limited exposure.

it is not nearly as important to banks as, say, housing was at one time. so there are pockets, but there are pockets of opportunity. there are pockets of stocks that are overpriced, the bond substitute stocks, and there are pockets of stocks fairly priced. frankly, some of the auto suppliers, like warner is trading at 11 times because people are worried about opportunities here. >> thanks for joining us. we have a news alert on i max to get to here with courtney reagan. we saw the stock halted earlier. what is happening. >> that's right. we now know the reason it was halted. it resumed trading but didn't move very much on the news that two private equity investors in imax china have divested their 5.9% stake to an international investment bank. that stake was held for three years, 5.9%. it has now been divested. kelly, back to you. >> all right. mike, what do you think of this? >> i'm not sure there's that

much to read into it. i'm not sure if there was sort of a motivation to have some distancing of, you know, from the china arm. but i don't know that it is necessarily that decisive. >> the only thing i'm think sing last time we spoke with ceo is he talked about some of the challenges in china and it was supposed to be a major area of growth for them. i wonder if it is becoming more formalized. >> if it is coming slightly harder. i know they needed in terms of revenue per screen and everything they look at in terms of the metrics. >> there i max again, with those two investors selling shares. shares of panera surging after being acquired by jab for $7 billion. whether it could be the start of a deals wave in the straunlt company and which companies could be attractive takeover targets. and then talking markets and big business of baseball when we're joined by tom ricketts, chicago cubs owner. you're watching cnbc, worldwide. . power your client's portfolio with powershares.

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welcome back. panera shares got a big boost as the fast casual restaurant announced it is being taken private by jab holdings, a european firm that also owns krispy kreme. ceo of panera told cnbc earlier today how it will change things. >> what's led to this powerful

success at panera is our ability to make long-term decisions. and increasingly it is difficult to do it in a public market setting. i spend 20% of my time telling the world, folks like you what we just did. i spend 20% of my time telling the world what we're about to do. i'm going to now spend 100% of my time doing what we do best, which is making a difference for our guests. >> so how -- >> joining us now is steven ander son, senior vice president and restaurant analyst at maxim and dean martin, managing director at commerce street capital. welcome, guys. steve, let's cut to the chase. who else is looking like a takeover target now that panera went private? >> i think you fall into two camps. first looking for a multi-concept operator on the lookout for a concept growing in the u.s. that may be in early stages of growth overseas and may fill a hole in terms of the

concept coverage. the other thought is that there may be some of these casual dining names that might have been beaten up in price but still have some sound fundamentals. what we're looking at are names line dunkin brand, who was down today on the -- basically on the thought that jab hold ijs ers i longer interested in them. we still think there's a possibility they might fall in someone's portfolio as a brand that's certainly growth in the u.s. and overseas for them. they might be a good possibility. >> down 3% today. one second, joe. going to ask gene the same question. cheesecake factory was up today. you know, is that a logical candidate for you here? >> yeah, it absolutely is. i mean especially when you look at the krispy kreme acquisition and the go private there and premium paid to shareholders. it makes sense for cheesecake factory and they can benefit greatly as the shareholders of

krispy kreme did. >> you mention if private equity, potential bid, part of the story has been things like real estate value and these brands that maybe could be rationalized in some other way. we have a macro environment when it comes to casual dining or fast casual where they are sources of value for potential buyer or do you want the brand and maybe in panera's case the technology? >> yeah, you know, it is actually a great when. despite the industry not performing very well, there's still a lot of money pouring into it. in 2017 i think you're going to see the mega deal or the mega deals. i think the real story in 2017 will be the small middle market deal. to your point, you know, investors and buyers are looking for concepts that have strong reactions from the public. so they're willing to pay out for concepts that are well-run, scaleable, have a good business plan and are perhaps outperforming peers. i think one example is buffalo wild wings, but i think there's

going to be and continue to be a lot of acquisitions in this space. >> and, gene -- i'm sorry, steve, why is it that if one restaurant like a panera -- and granted we had a few other deals -- if it goes that you think others will follow? in other words is it something about the economics of the whole industry that changed or is it simply panera had a uniquely attracting sitting here? >> i won't say the deal bonanza started in january when bob evans was taken out by golden gate capital, another prior take-out. we had darden buying cheddar, and popeye's taken out by brands international. the thinking is that there's still a low rate environment but rates are headed up. there's a lot of cash heading into the industry, and as was mentioned there are concepts out there that are still performing well. i think will be attracted to the concepts. >> steve, we heard panera ceo layout a pretty grim reality for

having to be a public company restaurant ceo and being on the treadmill of delivering same store sales all the time. it would have the take away saying, if i'm invested in a brand without a buyer waiting for them it could be a tough road. is that something we should generalize? >> if you look at panera's share price history, that stock could be in limbo going back two or three years ago when they were in the early stages of investment, and 2.0. now we're seeing the benefits, the dividends from that initiative, and now it resulted in the final pay-off today. >> yeah, absolutely. it is interesting to watch them keep going higher. by the way, steve, how much of this -- steve looked at the share price shooting up, saying, oh, they're killing the short. how much of the short interest in the restaurant industry do you think is playing an action here? >> it may be playing a role. in the overall industry we estimate about 7% in the overall

industry, but for some names you are seeing maybe two to three times that percentage. >> all right. gentlemen, thank you for joining us. interesting stuff. that's steven anderson and gene irkin about who may be next. let's get to retailer, bed, bath and beyond. how did they do? >> hi, kelly. they did beat for both earnings and revenue for fourth quarter. comps slightly better than expect at 0.4%. 20% growth online. the stores though down, low single digits. however, it is the week 2017 fwroer cast th forecast pulling down shares after hours. you see the drop down but then spiked back up. the streets trying to digest the good forth quarter but bad outlooked going forward. it is a 2 cent increase in that dividend. >> we know the deal with bed, bath. they have a lot to prove. they're unloved as it was

pointed out. >> sure, it is the way legacy chain retail is looking right now in term of street's view of it. it was down 3%, the stock today. it wasn't as if it came into the number with high expectations. bed, bath and beyond has not been among the chains that said, look, we're going to retrench and have investment and retreat and close a bunch of stores. people have been waiting for that. although they seemed to slow down the pace of buy back, they're still buying back stock which a lot of people criticize. >> shares down slightly lower after this choose. yum china set to release earnings at any movement. we will bring them to you as soon as they're out and tell you about the state of the chinese consumer. and apple pay was opposed to credit cards. but a shockingly low number of iphone users haven't tried it. we will have more details when we come back.

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welcome back. here are some other stories we are following today. another black eye for wells fargo. the "wall street journal" reports the bank fired at least two dozen employees in its credit card processing unit for pushing small business owners into costly contracts and falsely reporting customer sales. the bank overhauling the vision as a result of an internal probe. can yay west making history. his album the life of pablo is the only album to go platinum. it traditionally meant selling a million records, but 1500 streams on digital platform is

considered one sale. do the math there. apple pay was supposed to help replace cash and credit cards, but just 13% of all iphone users have tried the payment service. that's because 60% of americans aren't familiar with contactless payments and 40% worry about security risks. a third of u.s. stores in the u.s. accept the payment according to nielsen report. that's a publication tracking the payment industry. here is the thing. you go to uk and it is contact list basically. the restaurant bill, boom. the taxi, boom. it is so quick. i wish there was a way to accelerate the adoption. >> the united states has been slow in general when it comes to adapting to new payments. we still write more checks per capita and use more cash than any other developed area. i don't know why it is. i don't know if it is kind of the inherent suspicion of this invisible centralized process. i think it has to be a marty of time though. >> people used to tell me it is the banks. there's so much lobbying power in washington, pushing back on some of these. not the banks specifically but

the financial industry was pushing back against a lot of it. i don't know. i mean now it feels like, you know, all of these veriphone checkout systems you have, they have the technology. when you use apple pay, you are still using a credit card. >> it is one of the things that will grow gradually, then suddenly. first of all the chip cards are such a headache. >> they're the worls. >> and it should drive you to something better. >> in some places you still have to swipe and you do it and do it again and they don't read it properly. makes me crazy. in any case, up next, chicago cubs co-owner tom ricketts here to talk about the big business of baseball, whether the cubs can repeat and his outlook for the market. president trump is a big fan of golf but it won't be playing any rounds when he meet china's president xi at his mar-a-lago residence tomorrow. that's because xi has declared a war on golf in his nation. more details later on "closing bell." and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, or adempas® for pulmonary hypertension,

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. we will need more time to do tax reform. the house has a plan, but the senate doesn't quite have one yet and they're working on one. the white house hasn't nailed it down. so even the three entities don't -- aren't on the same page yet on tax reform. >> and it was those comments from house speaker paul ryan, in addition to surprising lyhawkish fed minutes that saw the dow and

s&p stage biggest reversals in 14 months today. the dow had been up 198 points and finished lower by 41. s&p was down 7. the nasdaq at intraday record highs was down 34. the russell is down 16. the traders got volatility back in this. >> they finally did. it is probably -- well, it is the biggest high-to-low reversal we have had in 14 months. the previous one in february of 2016 came at the end of a volatile period. it is a period where it's been sleepy for along time, in fact volatility at almost historic lows. it is hard to say if it will be the start of a more jumpy period or not. but definitely inject a few different story lines into the whole market narrative that will have a little more potential to move things around. >> so true. >> as we get into earnings as well. >> absolutely. time for a cnbc news update. let's get to sue herera. >> hi. here is what is happening at this hour. president trump defending fox news bill o'reilly amid

allegations of sexual harassment by the tv host which he denied. trump telling the "new york times" he doesn't think o'reilly should have settled the cases for millions of dollars. more than 30 companies pulled their sponsorship of o'reilly's top rated show. the canadian man accused of being the alleged hacker of yahoo!'s e-mail accounts appearing in court for a bail hearing. he was arrested last month. he now faces extradition to the united states. the company once none as taser international has change willed its name and is now offering free body cameras to every police officer in the country. taser now calls itself axon enterprises. and on the european tour, britain's price charles and wife camilla arriving in vienna for two-day visit to austria. the royal couple is schedule willed to meet with austria's president and chancellor. before austria they visited the vatican where they met pope francis. back to you. >> thank you. it seems so easy for people to

get an audience at the vatican sometimes. >> it is not. >> it is not. >> it really isn't. they're on a whirlwind european tour. >> if you're a royal -- >> that greases the skids a little bit. >> thank you so much. >> you're welcome. see you later. from bonds to baseball, next guest has a significant foot hole on both friends. his father joe ricketts is founder and owner of cd ameritrade. joining us is tim ricketts. he will be speaking with carl cantania at net/net which is a fran chase that looks at how leaders encourage change. that's a big intro. welcome to the show. we are glad you could be here. >> great to be here. >> so we wanted to start by asking you, your thoughts on the market landscape. you know, are you like the fed are you look at the stocks, the market is crazy overvalued or

any concern about bubbles that might be out there? >> i don't have concerns about bubble, but obviously valuations are pretty high. i think what i would like to see before too long is interest rates trending up again. i think there's a little more confidence in the market, a little more progress in washington and we'll see it happen. we will have to see. >> do you think it would be good for the economy? i know you guys have been heavily involved in bond trading business in the past, for example. we have heard different themes. we heard people say we need higher interest rates, that would help. others say be that as it may, we need more deregulation and get rid of the vocal rule, for example. what do you think? >> i think whatever benefit lower interest rates have or would have, it is already in. interest rates have been low for a long time. i think now it is time to look at deregulation, look at tax reform, look at ways to grow the economy. and then once the economy starts growing, interest rates should trend up naturally. >> yeah. how do you think we're doing on that front? because the confidence data has been pretty good but i don't

know, the gdp number is not really budging yet. >> yeah, i think people want to see some more progress, but, you know, we'll see how it goes. >> are you referring to progress out of washington? >> yeah, absolutely. yeah. >> so one thing i enjoyed reading about was the way your family is a little bit split on the political spectrum. sister feels one way, maybe a little bit more -- would have liked to see hillary clinton win. you have brothers, maybe your dad would feel a little differently. as a moderate, which i don't know if you want that label, if it even exists anymore, but how do you feel about what we hear from the trump administration and the prospects for tax reform and so many other things? >> well, you know, i try to look through all of the -- forget about all of the noise and all of the distractions. it really comes down to are we going to put in good policies, and i think like a lot of people, a lot of voters, didn't vote for the status quo. they want to see some change and some improvements in washington. homefully there will be a few things that can be put together in the next few months that will give people like myself some

confidence, some optimism, which i think will reflect in the economy. >> what would your checklist look like? we've heard a few different business leaders and jamie dimon had a long list of things he thought could see improvement. what is important to tom ricketts? >> obviously the tax reform is something that i think could have a big impact on the economy. i also think it comes down to are we giving businesses the confidence to invest in the future, and i think that would be the thing that would probably have the largest impact. >> right. and that's why, you know, you hear from business leaders and trump himself has mentioned surveys, the manufacturers, their omt micptimism is real hi. here on wall treat part of the reason valuation is up is they i think we're getting changes, but then the ceos are upset with the immigration policies and so forth. do you think the balance is being struck? >> i don't know. i know there's a lot of different ways to try to get the economy to pick up a little steam and hopefully the guys in

washington will start knocking them down. >> i only have one more political question. it is do you think jeb bush would make a good owner of a baseball team? >> i think he would be fine. i think he would be fine. i think his brother did pretty good with the rangers, right? >> do you think you might be going up against him, maybe getting derek jeter involved looking at the florida marlins? >> i have no idea, no idea. >> there are reports out today you guys might have a partnership. jeter, owner of a team, and not the yankees by the way. can you confirm there are talks under way, maybe you have taken a look at the marlins? >> first of all, we own the cubs and you only get to own one team. secondly, if there were talks i would have no idea. >> tom, just to stick on baseball a little bit and the economy of baseball, for the longest time there's been a general story out there that the audience is too old, the ratings aren't great, maybe the economics are not necessarily bit for the times or the future, yet on the other hand revenue

seems pretty good, value of teams keep going up. you had a popular world series as you might remember last year. where do you think you are at with the economics of baseball and if big changes need to be made in any way to make sure you refresh the audience? >> yeah, baseball is very strong as a business. i mean the number of people going to major league baseball games is solid. the number of people going to minor league baseball games continues to grow. it is still by far america's pastime. think people tend to compare ratings of baseball games to the ratings of nfl games, which it is not the way people consume their baseball. people typically cheer or watch their hometown team. but in about a third of baseball markets, the baseball games over the summer are the number one programs. so baseball is very strong. attend answer is great. revenues are growing. it is a great sport and it is the sport that people go to when they want to talk to the people they're with. it is the family sport. you can go with your grandpa, you can go with your kids. i mean it is still america's

pastime and it is doing very well. >> does that mean, tom, you don't necessarily think there have to be modifications to parts of the game, how it is played, try to shorten p games, any of these things that have been talked about? >> yeah, from my personal opinion, i don't think it is the length of game that's the issue, just the amount of times that the ball is in play. i think what the league is looking at is ways to just get a few less strikes, a few less strike-outs, a few less walks, keep the ball moving a little more. i think that's really the issue. i think we're looking at a lot of different things. the league will work with the players' association and i'm sure come up with ways to improve the game that will be a benefit to all of the fanls. >> how do you think the team is looking? early days but high homes after what you accomplished last season. >> these are early days. one are one and one, 160 games left. we looked pretty good. we were the best team in baseball last year from the beginning to the end. we had the youngest lineup in the history of the world series,

so that indicates we should be solid and continue to improve going forward. we had a relatively healthy spring training. so i think everything lines up for us to have a pretty good season, now it is about making sure the guys stay healthy and focused. of course, our division has gotten better too, so competition will stiffen but i think we'll have great summer. >> tom. thanks for joining us. one question, any timms on passing the cfa level 1 exam? >> yeah, go to bed early and be ready. it is a tough one. >> all right. from your lips to the boss's ears. thank you so much for joining us. really appreciate all of your time and hope you have a great time tonight. >> thanks. that's tom rickettes, owner of the chicago cubs. those yum china earnings we mention are out now. susan li has the numbers. >> kelly, outstanding quarter forum china. the stock rallying double digits in after hours. i will start with eps earnings, beating easily their 44 cents on the quarter, revenues coming in

at 1.28 billion, stopping estimates. they were lapping up a pretty tough quarter a year ago which also included chinese new year, which is when a lot of people bought a lot of buckets of chicken. so for the company as a whole, yum china up 1%. kfc was expected to be down compared to year ago, higher by 1%. same thing with pizza hut, up 2%. pizza hut has been struggling in china in terms of trying to get the patrons back into the stores and the restaurants, but looks like they're doing well. margins increasing more than expected. they can thank some tax changes and also food price inflation coming down. back to you. >> all right. this is interesting, susan. firsti we have macau looking up and now yum china. they did the spin off. >> obviously a very good quarter. it's been a range bound stock since the spin off five or six months ago, and it is one of the reasons people like spin offs because you don't know what

expectations to have. you can have an upside price like this. >> yeah, up by nearly 11%. we have a news alert on mgm. let's get to julia boorstin with that one. >> that's right. mgm is buying cable channel epix. approximately $1 billion. these companies are also making agreements to continue to bring their first-run movies to epix for several years. now, this deal was expected. mgm saying it advances its growth initiatives. viacom ceo saying as it executes its strategy it is an opportunity to strengthen the viacom balance sheet. lionsgate has been focusing on stars. since that acquisition it is another step for lionsgate to monetize non-core assets. having this cable channel fully owned by mgm. back to you. >> thank you. those shares a little weaker.

anything you would add? >> exempt for the whole space is being rationalized in this way. it is not a surprise. >> what do you mean by rationalized? >> all of the kind of single, narrow cable programming networks are kind of seemingly all in playwrig right now as th gear up for the new distribution world. >> feels like everybody is preparing for the next phase. chinese president xi jinping has a tough attitude toward one of president trump's favorite pastimes. those details coming up with their meeting at maurm today. first how to trade like a trump staffer. a look at controversial names in their portfolio and whether you should be a buyer next. you have access to in-depth analysis, level 2 data, and a team of experienced traders ready to help you if you need it. ♪ ♪ it's like having the power of a trading floor, wherever you are. it's your trade. ♪ ♪

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get ready. because we're helping leading companies lead with digital. welcome back. we have another news alert. it is on more retail store closings. courtney, what now? >> hi there, kelly. bb, the women's apparel retailer says it will be closing 21 of its store. it is exploring strategic alternatives for the entire retail chain, but closing 21 stores. it has 134 stores, 34 outlet locations, and it has retained b. riley as its investment adviser as it goes through this process. kelly, back to you. >> all right. they are piling up, courtney. thank you. what do herbalife, pfizer have in common? things that trump advisors have invested. erik. >> reporter: thanks, kellie. if you wanted to get stock

advice from senior white house officials, this is your chance. last week the government released financial disclosure forms for dozens of stop staffers allowing us the review 86 of them to see what stocks they own. only one official took a chance on her balance life. rockwell, which might look well relative to trump's goal for manufacturing jobs. most widely held stocks apple, ge and microsoft. the other popular names are straight out of the dow 30, but not to be left out united technologies was widely held, too. the parent company, of course, of carrier which had been a target of trump's for off-shoring plans. if you break it down by sectors, white house staffers were heavily in consumer tech and financials which matches the broader market break down. if you want to invest like a top government official, the simplest way to do it is an s&p 500 index funneled. white house officials who made over $160,000 are required to file these disclosures within 30 days of starting.

these are stocks they owned at beginning of their government jobs. steve bannon reported zero stocks whatsoever, and omarosa appeared 25 grand in exchange for appearing on "say yes to the dress." >> i love that show. i don't know if a wedding dress is a good investment, but in any case it is interesting -- i guess not that interesting if steve bannon doesn't own stocks because his father kind of famously had a bad experience with at&t. >> right. so that's the thing. these disclosures are interesting because you look at someone like bannon, you get pages and pages of different things, real estates, stocks, retirement accounts. jared kushner's disclosure form, 54 pages long and it goes line and line of every single possible investment he has. in his case he actually divested almost all of the single stocks that he owned, the stocks he owned at the time he start in government service. >> wow. all right. interesting stuff. guess-of. >> if you wanted to invest like steve bannon you would have to buy into the "seinfeld"

distribution rights 20 years ago and make that fortune. >> i was thinking if my mom's wedding dress lasted 30 years, paid a couple of hundred bucks, it was a good investment. >> and how many were there, one dress? >> i don't know, multiple. thark. president xi jinping arrivals at mar-a-lago tomorrow. while president trump has hit the golf course when he hosted leaders there in the past, he won't go 18 holes with xi this weekend and we'll tell you why after this. coming up on "fast money," a tom investment manager will reveal what she says could be the next black swan event in the market at the top of the next hour. alr? you mean after that? no, i'm talking before that. do you have things you want to do before you retire? oh yeah sure... ok, like what? but i thought we were supposed to be talking about investing for retirement? we're absolutely doing that. but there's no law you can't make the most of today. what do you want to do? i'd really like to run with the bulls. wow. yea. hope you're fast. i am. get a portfolio that works for you now

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>> welcome back. elon musk spacex releases new

footage of the historic launch, the company successfully relaunched a rocket to deliver a satellite in rocket. it shows it landing on a droneship in the atlantic ocean. we're seeing mike after that. >> but it's fitting somehow. yeah, it's always impressive to see that, it's funny, they will only release it after they nailed it. >> but this was such an accomplishment. this is the first time anyone launched a soyuz rocket, not to mention landing it on that platform. this is a falcon 9. they had a payload go up in flames. this is a huge thing. >> it's always great to see. it's amazing, there is obviously a lot of suspension surrounding it. it seems you should be impressed. >> exactly. one summer i think bill bryson about 1927, the dawn of the

aviation industry. america has fallen behind, the airlines, we were behind in two. it's really amazing to be able have a front row seat to what is a new chapter. >> the space rates, okay, among americans. >> yeah. >> nasa plus private sector. >> there is a lot with the russians, the technology, arriving, questions about the future of the international space station. congratulation, elon musk and spacex. now everybody can see, there is that video of the reused rocket landing successfully. up next, why the president of china won't be picking up golf clubs when he visited trump's mar-a lago resort tomorrow in florida.

welcome back. we have a market flash on jazz pharmaceuticals. >> the company stock settled litigation pending since 2010 over a drug to help narcolepsy. so the litigation is now agreeing for hick mont to sell a generic version of this drug. not until 2023. kelly, back over to you. >> slayers of nearly 5%. thank you. chinese president xi jinping

met with president trump tomorrow t. two leaders will not be hitting the links. we are joined with a story about why. eunice yoon joins us. >> reporter: thank you so much, president trump used golf diplomacy before he hit it off with japan's prime minister shinzo abe on the green. but for the chinese president, that might not work. that's because back home here in china, president xi declared a war on golf as a part of the war on corruption. in fact, the chairman described golf as a sport for millionaires. golf has a reputation here for being a past time for corrupt government officials to go and spend money, because of that president xi has been on the anti-golf corruption drive. he has been frowning, we seen golf courses have been suffering. in fact, over 100 have been shut down over the past couple of years for a variety of reasons. so what does all this mean? it means that for the meeting

venue of mar-a lago could be a politically uncomfortable one for president xi. he cannot be seen as going on the links, otherwise he could lose credibility at home, both with the public as well as with his colleagues. and objects matter, even though he is not an elected official, he still the public opinion here really matters. that's because at the end of the year, there's going to be a large communist party in congress, where the top leaders are chosen for the next five years. he wants to make sure that nothing disrupts that or tarnishs his image. kelly. >> eunice, at the same time, we have seen better numberss out of macaw. he has consolidated numbers in his term. i wasn't sure if he could leave the corruption behind. it sounds like that is still quite a priority. >> reporter: no, it's definitely a priority. and that's another reason why people are here are kind of wondering what he's going to do,

because unlike japan's prime minister or japan, where you see a real love affair of golf, for the chinese, golf has been seen with such a stigma. he can't be seen in an unscripted situation. there has been a lot of rumbling on social media, the meeting venue could be a diplomatic snub for president xi. it was so much so the foreign ministry today was trying to put a whole positive spin on mar-a lago say it isn't the white house but is known as the richer white house. >> yes, it is, thank you so much. it's very early for us we should add in china. another indication of golf, someone says it has that reputation in this country, too. >> some say that is where the president feels comfortable and it's a privilege to join him there. i have been trying to think of a reverse, if we had a u.s. president going to a foreign country to meet with the leader and that leader kind of insists

on a venue that's going to be a little uncomfortable. it will make problems, sort of socially and politically at home. >> taking them on a yacht? >> perhaps there wouldn't be a heightened sensitivity. it seems in china, there is a tremendous focus on protocol and exactly -- >> and image and president xi as we know, every photo when he is greeting world leaders, i saw rex tillerson, he is in the assertive hand position. the other leader appearing to approach him. it is a departure for him to show up. >> especially with the backdrop, where you have i think people in the white house are trying to manage expectations here, saying, look, there will be a kind of an airing of our difference, maybe we can get on the same page and start a process. they're not saying, we will come to some grand agreements here. >> we should mention, this will get a lot of coverage, for the market's conclusion, china is actually growing again, that's void for everybody. >> it actually is.

the macrobackdrop couldn't read better if we have questions about trade relationships and other policies. i do think, there will be high stakes in terms of what tone on trade is going to be struck right here. at least so far, it's been more bark than bite. >> fried chicken and golf is out. we got it, michael, thank you, that does it kwor "closing bell." "fast money" begins right now. >> "fast money" begins right now live from new york city time's square, i'm mellissa lead. our panel here, tonight on "fast," it's the panera premium. they can be taken out for a whopping $7.5 billion. so which food giant could be next? plus a top investor says a plaque swann event for the market could be lurking in the shadows. we will tell you what it is and how you could protect yourself. later, amazon and jeff bezos, could it be the high bidding war for content and who could be